background preloader

Local currency

Local currency
See Emissions Reduction Currency System for community based initiatives aimed at emission reduction In economics, a local currency, in its common usage, is a currency not backed by a national government (and not necessarily legal tender), and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering. They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse. Terminology[edit] Local currencies are sometimes referred to as a community currency. Alternative currency - often used, but in essence this term is deceptive in many cases, as many currencies are designed to be complementary, and not to substitute conventional currencies.Auxiliary currency - far less common, as synonym of community or local currency. Characteristics[edit] Theory[edit] 1. 2. 3. Related:  Alternative Currency

We give Your Community a Place to Thrive | Alternative currency An alternative currency (or private currency) is any currency used as an alternative to the dominant national or multinational currency systems (usually referred to as national or fiat money). They are created by an individual, corporation, or organization, they can be created by national, state, or local governments, or they can arise naturally as people begin to use a certain commodity as a currency. Mutual credit is a form of alternative currency, and thus any form of lending that does not go through the banking system can be considered a form of alternative currency. When used in combination with or when designed to work in combination with national or multinational fiat currencies they can be referred to as complementary currency. Most complementary currencies are also local currencies and are limited to a certain region. Barters are another type of alternative currency. Often there are issues related to paying tax. List of alternative currencies[edit] Advantages[edit] See also[edit]

Complementary currency Complementary currency describes currencies that exists as a supplement to our conventional (national) money. “A complementary currency (…) is an agreement to use something else than legal tender (i.e. national money) as a medium of exchange, with the purpose to link unmet needs with otherwise unused resources” (Lietaer & Hallsmith 2006: 2). Complementary currencies advocates thus don't claim a full Separation of money and state. Purposes[edit] Complementary currencies are often designed intentionally to address specific issues or problems.[3] Most complementary currencies have multiple purposes and/or are intended to address multiple issues. In the current economic climate, some local money projects can also be promoted as low carbon, by encouraging localisation of trade and relationshipslifeboat currenciesencouraging use of under-used resourcesrecognising the informal economy Complementary currencies[edit] Types of complementary currencies[edit] Major activists[edit] Related concepts[edit]

Wikipedia: LETS Local Exchange Trading A local exchange trading system (also local employment and trading system or local energy transfer system; abbreviated to LETS or LETSystem) is a locally initiated, democratically organised, not-for-profit community enterprise that provides a community information service and record transactions of members exchanging goods and services by using the currency of locally created LETS Credits.[1] History[edit] Michael Linton originated the term "local exchange trading system" in 1983 and for a time ran the Comox Valley LETSystems in Courtenay, British Columbia.[2] The system he designed was intended as an adjunct to the national currency, rather than a replacement for it,[3] although there are examples of individuals who have managed to replace their use of national currency through inventive usage of LETS. A number of people have problems adjusting to the different ways of operating using a LETSystem. Criteria[edit] Of these criteria, "equivalence" is the most controversial. Operation[edit]

Dieter Suhr, Neutral Money Network Prof. Dr. Dieter Suhr (+) University of Augsburg A Critical Analysis of Traditional Money and the Financial Innovation "Neutral Money" 1. 1.1. Our thesis is: in spite of their formidable efficiency, current Western free market economies still suffer from significant deficiencies in their monetary transaction system. The insights that clear up both issues, that is, the monetary deficiencies as well as how to improve money's exchange services, are very simple. 1.2. In spite of their simplicity, the following concepts meet with resistance in our minds. To steer clear of the hindrances associated with traditional thinking, we shall start from some very elementary observations and proceed step by step from Robinson Crusoe to the money economy and, finally, to our monetary pilot project. 1.3. Modern monetary economics says that money saves information and transaction costs. But money does not merely save information and transaction costs. 2. 2.1. 2.2. 2.3. 2.3.1. 2.3.2. 2.3.3. 2.3.4. 2.3.5. 3.

Crom Alternative Currency Mutual credit Mutual credit is a type of alternative currency in which the currency used in a transaction can be created at the time of the transaction. LETS are mutual credit systems. Typically this involves keeping track of each individual's credit or debit balance. Advantages and disadvantages[edit] One economic advantage of mutual credit is that the currency supply is self-regulating—the money supply expands and contracts as needed, without any managing authority. One downside of mutual credit, as with any form of credit, is the possibility of exploiting the system by running up a negative balance and then leaving. Examples and types of systems[edit] See also[edit] References[edit] T.H.

Berkshire Local Currency Accounting Procedures for BerkShares Summary of Discussion November 21, 2006 (Updated on February 6, 2009) Berkshire South Community Center with Alan Glackman, C.P.A., P.C. Robin Markey from Smith Watson & Company LLP Asa Hardcastle of Zenn New Media, President of BerkShares, welcomed the group and thanked the businesses represented reminding them that they are the heart of BerkShares. He went on to say that the then 10% discount program was only the first stage of trade in BerkShares. As of November 21, 2006, over 250,000 BerkShares had been issued by the participating banks. Asa then introduced Alan Glackman and Robin Markey who referenced the basic system for accounting with BerkShares as described on the BerkShare web site. Accounting Procedures for BerkShares Table of Contents Setting up your accounting system for BerkShares Receiving payment in BerkShares Paying invoices in BerkShares * BerkShares are cash. Depositing BerkShares Exchanging Federal Dollars for BerkShares

New Currency Frontiers LETS.LOOK Private currency A private currency is a currency issued by a private organization, be it a commercial business or a nonprofit enterprise. It is often contrasted with fiat currency issued by governments or central banks. In many countries, the issuance of private paper currencies is severely restricted by law. Today, there are over four-thousand privately issued currencies in more than 35 countries. History[edit] United States[edit] A private $1 note, issued by the "Delaware Bridge Company" of New Jersey 1836-1841. In the United States, the Free Banking Era lasted between 1837 and 1866, when almost anyone could issue paper money. Ithaca hours[edit] Main article: Ithaca Hours Since 1991, residents of and around the city of Ithaca in Western New York State have been using a private currency in which participating workers either earn or purchase Ithaca Hours, which may be used to buy goods and services locally. BerkShares[edit] United States Private Dollars[edit] The U.S. Liberty Dollars[edit] Bitcoin[edit]

Metacurrency Collabathon: a wealth system After Sibos, Q4 is usually the period of the year when I try to re-boot, to refresh my sources, to be a sponge and take-in new knowledge. It’s when I start painting for the next year. When the themes and trends for next year start emerging. I wanted to get a much better feel for what this world of alternative and complementary currencies was all about, and decided to join a week-end “Collabathon” organized by Art Brock (@artbrock) and Eric Harris-Braun (@zippy314), the founders of The Metacurrency Project. In the slipstream of the Contact Summit, they wanted to gather the minds to work on NextNet ideas and tools. From their site: What is the NextNet? It was a small group of people – about 50 or so- gathering that Friday evening. Friday evening was intro-day. The weekend had something “sacred”. Some of you may remember that Art was one of our “igniters” for the New Economies session at Innotribe at Sibos Toronto, but there we only had a couple of minutes. Metacurrency comes in two parts:

LETS Groups around the world - LETS-Linkup International LETS Directory Community Exchange System The Community Exchange System (CES) is an Internet-based trading network[1] which allows participants to buy and sell goods and services without using a national currency. While the relatively new system can be used as an alternative to traditional currencies such as the dollar or Euro or South African rand, the Community Exchange System is a complementary currency in the sense that it functions alongside established currencies. It is international in scope.[2] It does not have printed money or coins[3] but uses computer technology to serve as an "online money and banking system" or alternative exchange system and as a marketplace.[4] It is an advance from an arrangement in which either one good or service is exchanged for another good or service, or commonly called barter, since it uses a digital unit of value.[2][3] While there are reports that the system is growing, in 2011 the system handles only a tiny fraction of international world commercial activity. Background[edit] Size[edit]